Main Question

During last nights "interest rate" meeting here are some points we felt would help us to understand the overall picture that would help us to determine what questions we could ask.

Our main question that we thought should be our main focus is:
HOW DO BANKS MINIMIZE RISK TO MAXIMIZE PROFIT?

Here were some other points-
- What is interest rate risk?
- How are interest rates set by the Fed?
- Why/what causes interest rate change?
- How do banks determine rates?
- How do banks make money?
- What affects interest rates? (economical)
- How do interest rates affect banks?
- How do banks adjust to rate change?

Obviously these ?'s are geared towards interest, but some could be altered for FX rate risk....

Process Flow or Timeline or Whatever

Sia is creating a detailed version of this, but I figured I should update a preliminary idea of what was said at meeting.

Preliminary Process Flow as of 03/06/07

1. Exchange Rate Risk Small Group
- Initial research
- Background information
- How it’s used as a risk management tool
Interest Rate Risk Small Group
- Initial research
- Background information
- How it’s used as a risk management tool

Done by March 20th

2. Domestic Policy Research
- How US banks use the above tools for risk management
- Country wide policies
- Company specific policies

Done by April 2th

3. Domestic Interviews
- Finalized by April 9th
- Interview questions finalized prior to first interview
- Completed by April 30th

Done by April 30th

4. Asia Policy Research
- How Asian banks use the above tools for risk management
- Region wide policies
- Country specific policies
- Company specific policies

Done by May 7th

5. Asian Interviews
- Finalized by May 12th
- Completed by May 31st (duh)

Done by May 31st

6. Comparative Analysis
- Done after each Asian interview (Dinner and drinks?)
- In-depth analysis done upon return

Done by June 18th?

7. Paper

Done by July 23rd

8. Presentation

Done by July 31st


Side Note –
Mike wants to check out Sumo wrestling in Japan and Muay Thai in Thailand, so on that same note it would be cool if we all looked into stuff we would be interested in doing in specific countries, so we could have some non-CMS sponsored outings as a whole or even partial group. Seriously, Sumo in Japan will probably be pretty cool. By the way… I hear cockfighting is legal in Thailand if anyone is interested.

Possible Points

I like what should be covered in the paper discussed below by Lisa. However, do you guys know what we are tyring to say? We have no choice but to discuss many of these points in our paper, I thought maybe a possible topic would be how the banker bank managers etc manage the inherent risk associated with being a financial institution such as a bank in Asia.